Now listen up, here’s the serious bit…
What is a mortgage?
A mortgage is a type of loan taken out to cover the cost of a property or land.
Types of mortgages…
The main three are:
- Interest only – Paying only the interest on the loan and nothing off the capital (the amount you borrowed)
- Repayment – Paying the interest and part of the capital off every month
- Off-set- Savings and a mortgage with the same lender and your cash savings are used to reduce – or ‘offset’ – the amount of mortgage interest you’re charged. This type of mortgage isn’t suitable for young people, it’s for established professionals